Abstract

Energy intensity reduction has become a constrained target from the 11th five-year plan in China. Energy consumption is expected to increase because of rapid urbanization and economic growth, whereas energy intensity reduction is regarded as a method to alleviate the pressure of growing energy demand. An important contribution of this study is the investigation of urbanization impact on energy intensity across China at the urban level. This research uses a balanced panel data set of 224 cities for the period between 2005 and 2016 and reports deep insights into and innovative findings for the reduction of energy intensity across different regions and cities in China. To examine the direct, indirect, and total effects and regional heterogeneous effects, we employ spatial Durbin models and spatial decomposition techniques. It reveals significant and negative direct effects of urbanization in the western and full regions. However, the indirect and total effects of urbanization are significantly negative in the eastern and western regions. The pressure of urbanization on energy has alleviated and is reversing, especially under the construction of people-oriented and green new-type urbanization. The empirics highlight industrialization as a contributing factor for high energy intensity in the spatial outcomes of regional analysis. The direct effect of per capita GDP supports the existence of the inverted U-shaped relationship between economic development and energy intensity. The study proposes fruitful implications to construct new-type urbanization for energy conservation and sustainable development in China.

Highlights

  • China has been the largest energy consumer since 2009 [1]

  • Improving energy efficiency is recognized as a cost-effective way to alleviate the energy shortage, environmental damage, and sustainable development problems brought by energy consumption [4] and to achieve sustainable development [5]

  • The positive spatial autocorrelation confirms the hypothesis of spatial dependence of energy intensity among cities, contributing to technology spillover, factor transportation, and imitated consumption preferences caused by convenient socio-economic interactions among neighbors

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Summary

Introduction

China has been the largest energy consumer since 2009 [1]. Its energy structure is dominated by coal, with the problems of energy shortage, energy security, and environmental pollution becoming severe. Improving energy efficiency is recognized as a cost-effective way to alleviate the energy shortage, environmental damage, and sustainable development problems brought by energy consumption [4] and to achieve sustainable development [5]. Ang [6] stated that energy intensity is a useful indicator of carbon emission and climate change. Reducing energy intensity is regarded as an efficient and effective way to mitigate energy shortage [7]. Against the backdrop of climate change, peak oil, and energy security, the central government of China has realized the urgent necessity for energy conservation and carbon emission reduction. The evolution of energy intensity and its determinants in China are of great interest to researchers and the government [8,9], among which urbanization has caused much concern [10]

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